Allocation of Decision Rights in International Franchise Firms: The Case of Master and Direct Franchising

2010 ◽  
pp. 45-58 ◽  
Author(s):  
Nada Mumdžiev
Keyword(s):  
Decision Rights ◽  
Allocation Of Decision Rights

scholarly journals The future of corporate governance in knowledge-dispersed companies.

2017 ◽  
Vol 10 (17) ◽  
pp. 129-146
Author(s):  
Martin Krause
Keyword(s):  
Corporate Governance ◽  
Present Article ◽  
Decision Rights ◽  
Xxth Century ◽  
The Future ◽  
Institutional Innovations ◽  
Allocation Of Decision Rights ◽  
Practical Field

Corporate governance focuses its attention on the structure of the firm and the allocation of decision rights between owners and managers basically, plus other stakeholders. The field has developed extensively during the last decades inspiring reforms and practices as well as learning from them. Most of the analysis though takes into consideration the XXth Century firm, rightfully so since CG is a very practical field in the overlapping map of law, economics and finance. The firm has probably been one of the most successful institutional innovations of the last centuries. Five hundred years ago only a few of them existed, today they are pervasive. Nevertheless, we cannot expect the firm to be the same a hundred years from now as it is today. And if companies are going to be different, how will their corporate governance be affected? The present article does not expect to give an answer to such question. It only attempts to provoke debate and speculation about a possible evolution of the firm based on one single aspect of change: the increased use of dispersed knowledge. After suggesting some development and analyzing present innovations in that direction, we will open up to consideration how those potential changes may affect corporate governance. Of course, there are no specific conclusions, just a call to open our minds to future possible scenarios.

scholarly journals Allocation of Decision Rights Between the Parent Company and Its Subsidiaries

2016 ◽  
Vol 33 (3) ◽  
pp. 355-381 ◽  
Author(s):  
Yuanyuan Liu ◽  
Ting Luo ◽  
Heng Yue
Keyword(s):  
Information Quality ◽  
External Environment ◽  
Power Structure ◽  
Parent Company ◽  
Economic Consequence ◽  
Decision Rights ◽  
Future Performance ◽  
Internal Information ◽  
Allocation Of Decision Rights

This article examines the determinants of allocation of decision rights between the parent company and its subsidiaries, and the economic consequence of suboptimal power structure. Based on China’s unique double disclosure for the parent company and the whole group, we construct a decentralization index to measure how decision rights are allocated within the group companies. We find a more decentralized (centralized) power structure for the groups with more uncertain (certain) external environment and with poorer (better) internal information quality. We also show that the groups with suboptimal power structure have weaker future performance.

Governance Knowledge

2011 ◽  
pp. 216-254
Author(s):  
Petter Gottschalk
Keyword(s):  
Business Processes ◽  
It Governance ◽  
Organizational Structures ◽  
It Use ◽  
Executive Management ◽  
Decision Rights ◽  
It Investments ◽  
Use Of Technology ◽  
The Board Of Directors ◽  
Allocation Of Decision Rights

In many organizations, information technology has become crucial in the support, the sustainability and the growth of the business. This pervasive use of technology has created a critical dependency on IT that calls for a specific focus on IT governance. IT governance consists of the leadership and organizational structures and processes that ensure that the organization’s IT sustains and extends the organization’s strategy and objectives (Grembergen et al., 2004). IT governance matters because it influences the benefits received from IT investments. Through a combination of practices (such as redesigning business processes and well-designed governance mechanisms) and appropriately matched IT investments, top-performing enterprises generate superior returns on their IT investments (Weill, 2004). IT governance can be defined as specifying decision rights and accountability framework to encourage desirable behavior in the use of IT (Weill & Ross, 2004). This is the definition we will use here. Other definitions are for example: (i) IT governance is the structures and processes that ensure that IT supports the organization’s mission. The purpose is to align IT with the enterprise, maximize the benefits of IT, use IT resources responsibly and manage IT risks, (ii) A structure of relationships and processes to direct and control the enterprise in order to achieve the enterprise’s goals by adding value while balancing risk versus return over IT and its processes, (iii) IT governance is the responsibility of the board of directors and executive management. It is an integral part of enterprise governance and consists of the leadership and organizational structures and processes that ensure that the organization’s IT sustains and extends the organization’s strategies and objectives, and (iv) IT governance is the system by which an organization’s IT portfolio is directed and controlled. IT Governance describes (a) the distribution of decision-making rights and responsibilities among different stakeholders in the organization, and (b) the rules and procedures for making and monitoring decisions on strategic IT concerns (Peterson, 2004a). IT governance has attracted substantial attention in recent years (e.g., Chin et al., 2004; Grembergen & Haes, 2004a, 2004b; McManus, 2004; Meyer, 2004; O’Donnell, 2004; Peterson, 2004a, 2004b; Rau, 2004; Read, 2004, Robbins, 2004; Trites, 2004; Weill & Ross, 2004, 2005). Here we will discuss IT governance in terms of resource mobilization, allocation of decision rights as well as strategic alignment.

IT Governance as Allocation of Decision Rights

2006 ◽  
pp. 232-250
Author(s):  
Petter Gottschalk
Keyword(s):  
It Governance ◽  
Decision Makers ◽  
Decision Rights ◽  
Critical Part ◽  
Allocation Of Decision Rights

Most scholars seem to agree that a critical part of IT governance is allocation of decision rights. Allocation is concerned with identifying decision makers and decision categories.

scholarly journals When Does Coordination Require Centralization?

2008 ◽  
Vol 98 (1) ◽  
pp. 145-179 ◽  
Author(s):  
Ricardo Alonso ◽  
Wouter Dessein ◽  
Niko Matouschek
Keyword(s):  
Cheap Talk ◽  
Decision Rights ◽  
Local Conditions ◽  
Decentralized Coordination ◽  
Formal Mechanism ◽  
Other Information ◽  
Allocation Of Decision Rights ◽  
Division Managers

This paper compares centralized and decentralized coordination when managers are privately informed and communicate strategically. We consider a multidivisional organization in which decisions must be adapted to local conditions but also coordinated with each other. Information about local conditions is dispersed and held by self-interested division managers who communicate via cheap talk. The only available formal mechanism is the allocation of decision rights. We show that a higher need for coordination improves horizontal communication but worsens vertical communication. As a result, decentralization can dominate centralization even when coordination is extremely important relative to adaptation. (JEL D23, D83, L23, M11)

Strategy Choice

2006 ◽  
pp. 116-125
Author(s):  
Petter Gottschalk
Keyword(s):  
Development Strategy ◽  
It Governance ◽  
Systems Development ◽  
Current Situation ◽  
Strategy Choice ◽  
Decision Rights ◽  
Allocation Of Decision Rights

When needs for change have been identified and proposals for filling gaps have been developed, alternative actions for improving the current situation can be developed. New IS/IT can be developed, acquired, and implemented in alternative ways. Several decisions have to be made when a new IS/IT is chosen. Such decisions are called systems development strategy, and they are illustrated later when we discuss IT governance as allocation of decision rights.

Sign in / Sign up

Export Citation Format

Share Document